Correlation Between Intel and Kantone Holdings
Can any of the company-specific risk be diversified away by investing in both Intel and Kantone Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intel and Kantone Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Kantone Holdings Limited, you can compare the effects of market volatilities on Intel and Kantone Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intel with a short position of Kantone Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Kantone Holdings.
Diversification Opportunities for Intel and Kantone Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Kantone is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Kantone Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kantone Holdings and Intel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intel are associated (or correlated) with Kantone Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kantone Holdings has no effect on the direction of Intel i.e., Intel and Kantone Holdings go up and down completely randomly.
Pair Corralation between Intel and Kantone Holdings
If you would invest 2,230 in Intel on August 31, 2024 and sell it today you would earn a total of 135.00 from holding Intel or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Kantone Holdings Limited
Performance |
| Timeline |
| Intel |
| Kantone Holdings |
Intel and Kantone Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Kantone Holdings
The main advantage of trading using opposite Intel and Kantone Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Kantone Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kantone Holdings will offset losses from the drop in Kantone Holdings' long position.The idea behind Intel and Kantone Holdings Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kantone Holdings vs. Fidelity National Information | Kantone Holdings vs. Jack Henry Associates | Kantone Holdings vs. Cognizant Technology Solutions | Kantone Holdings vs. CDW Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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